Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![**Question:**
An unregulated monopolist would *not* use which of the following:
- ○ marginal cost pricing
- ● the profit-maximizing rule
- ○ price discrimination
- ○ economies of scale
**Explanation:**
This question is designed to test your understanding of monopolistic behavior in an unregulated market. An unregulated monopolist typically aims to maximize profits by setting prices above marginal cost, making "marginal cost pricing" the correct answer to the question of what they would not use. The other options represent strategies that monopolists can use to increase their profits or reduce costs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb8725f1-0fe9-43ac-84c9-781e5eaa8007%2Ff06ad2e3-3d9f-44f2-97cb-1d17838fcee0%2F13v1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Question:**
An unregulated monopolist would *not* use which of the following:
- ○ marginal cost pricing
- ● the profit-maximizing rule
- ○ price discrimination
- ○ economies of scale
**Explanation:**
This question is designed to test your understanding of monopolistic behavior in an unregulated market. An unregulated monopolist typically aims to maximize profits by setting prices above marginal cost, making "marginal cost pricing" the correct answer to the question of what they would not use. The other options represent strategies that monopolists can use to increase their profits or reduce costs.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1: Define monopoly
A single seller in the market for goods is called a monopoly market. Marginal revenue is the demand for monopolists and it is a downward sloping curve. If the marginal revenue and cost are equal the monopolist maximises their profits.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education